UPDATE: K-Dow venture a bright spot for state

MIDLAND -- A chemical giant's joint venture might not mean job creation in the Tri-Counties, but it further strengthens the business' foothold in the industry, an analyst says.

Dow Chemical Co.'s announcement Tuesday that it will set up its $11 billion partnership with Kuwait Petroleum Corp. in southeast Michigan as K-Dow Petrochemicals provided a bright spot amid news of thousands more job cuts at General Motors Corp. and Volkswagen choosing Tennessee over Michigan for a new assembly plant.

Joining the drumbeat of economic hopes: The Michigan Economic Development Corp. OK'd a state tax credit worth $1.8 million over 10 years to Evergreen Solar Inc., which plans to open at 2820 Schuette in Midland by the end of next year. Eventually, the $55.2 million investment will yield 100 jobs for workers creating "string ribbon" silicon wafers.

Meanwhile, K-Dow over the next several years expects to hire about 800 people with an average annual salary of $95,000. Some Dow executives from mid-Michigan are likely to transfer to the new operation. Dow executive James R. Fitterling, business group president for Dow Basic Plastics, will become the company's chief executive officer.

Officials said they have not determined a city, though Dearborn leaders were greeting the announcement with the hope that their town would land the headquarters.

Dow spokesman Chris Huntley said the new business will operate independently, just like Dow Corning Corp., also a 50-50 venture.

"Other than having seats on Dow Corning's Board of Directors, it operates separate from Dow," he said. "This will be the same."

K-Dow Petrochemicals' location has to do with its proximity to Detroit Metro Airport, a wealth of educational opportunities and nearness to culturally diverse communities, Huntley said.

"My first choice would have been right here in Saginaw, but hey, it's still in Michigan, and that is a good thing," said Steve Anderson, branch manager and an analyst at Hilliard Lyons, 4835 Towne Center in Saginaw Township.

Michigan competed with Louisiana and Texas for the project.

Last week, Dow announced the $15 billion acquisition of competitor Rohm and Haas Co. of Philadelphia.

"It shows the company has strength and is growing, and what's most encouraging is these are modern technologies we're talking about," Anderson said.

K-Dow Petrochemicals will make substances found in food packaging, milk jugs and plastic containers, as well as pipes and liners, fibers, packaging films, durable goods and automotive parts.

What should most encourage residents across the state about Dow's multibillion-dollar deal is it follows other major companies' decisions to locate in Michigan, Anderson said.

"There's Google, Toyota and Honda," he said.

"Some want to gnash their teeth about the things going wrong with economy, but you have to look at what's going right, too. You have to look at the long-term benefits of something like this."

The joint venture is contingent upon final incentive approvals.

Granholm expressed confidence in the investment.

"For decades Dow Chemical has been an important part of Michigan's economy by creating jobs and investing in our communities," she said.

"K-Dow Petrochemicals, which will bring hundreds of jobs to our state, would rank in the top half of the Fortune 500 if it was publicly traded, and the fact that it will be headquartered here is good news for Michigan."